Loomis releases new financial targets
Today Loomis AB (publ) is having a Capital Markets Day (“CMD”) in London with the theme “Growing revenues but maintaining our focus on earnings and margins”. The management team will during the CMD exemplify growth potential and margin improvement initiatives and scenarios to support new financial targets.
In 2010 the most important target of reaching 10 per cent operating margin (EBITA)1)by 2014 at the latest was set. The company is now very close to this target and has therefore decided to set new financial targets to illustrate the next step in Loomis development during 2014-2017.
New Financial Targets for Loomis 2014-2017
| Target | New 2014-2017 | Old 2010-2014 |
| Revenue | SEK 17 bn by 2017 | No revenue target |
| Operating margin (EBITA) | 10-12% | 10% by 2014 at the latest |
| Debt Gearing | Max 3.0 net debt/EBITDA2) | Max 2.5 net debt/EBITDA |
| Dividend | 40-60% of net income | 40-60% of net income |
President and CEO, Jarl Dahlfors comments
“Loomis has since the IPO in 2008 focused on improving quality in the business and increasing the operating margin. The company has now a high quality business with an operating margin of close to 10 per cent. Continuous margin improvements will remain an important focus within our company and we believe there are still opportunities to improve the operating margin further. The new target of an expected operating margin of 10-12 per cent indicates that increased growth might hold back continuous margin improvements.
Loomis has a strong platform and is now ready for an increased focus on growth that mainly will come from three areas;
- Continued CMS outsourcing primarily in the US,
- Add-on services to existing and new customers, for example Loomis SafePoint and International Services, and
- Acquisitions.
Acquisitions can affect our third target - Debt Gearing. Raising the maximum level to 3.0 gives us headroom for taking advantage of opportunities that meet our acquisition criteria.
Our history shows that we have had continuous EBITA improvements, increased cash flow and stable capital expenditures. Our ambition is to keep that trend going forward and that enables us to keep our dividend policy of a yearly dividend 40-60% of net income.
All in all, this brings exciting opportunities for the next step in Loomis’s history and I am looking forward to continue to develop the company to even greater success in the future.”
Web cast
To follow the Capital Markets Day via web cast, please follow this link. The link is also available at our website, http://www.loomis.com/en/Investors/Loomis-Capital-Markets-Day/.
1) Earnings Before Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
2) Earnings Before Depreciation, Interest, Taxes, Amortization of acquisition-related intangible fixed assets, Acquisition-related costs and revenue and Items affecting comparability.
25.09.2014
Jarl Dahlfors Anders Haker
President and CEO CFO
Mobile phone: 46 70 607 20 51 Mobile phone: 46 70 810 85 59
Email: jarl.dahlfors@loomis.com Email: anders.haker@loomis.com
Loomis AB discloses the information provided herein pursuant to the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 12.30 p.m. (CEST) on September 25th, 2014.
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